BANK OF NEW ZEALAND.

New Zealand Times, Volume XXXIV, Issue 5800, 31 October 1879, Page 3

BANK OF NEW ZEALAND.

{New Zealand Herald, October 24.) The half-yearly general meeting of shareholders was held yesterday,—John Logan Campbell, Esq. (Chairman of the Board of Directors), presiding. There was a large attendance of shareholders. . The General Manager read the advertisement announcing the meeting, also the half-yearly report, as follows ; Thirtv-sixth Report of the Directors of the Bank of New Zealand, to the Half-yearly General Meeting of the Proprietors, held at the Banking-house, Auckland, on Thursday, 23rd October, 1879. Tha Directors beg to submit the result of the past half-year’s operations, which will, no doubt, be considered satisfactory. The net profit at 30th September, after making ample appropriation for dependencies, considered bad or doubtful, and the usual reductions in Bank premises and furniture accounts, amounts to £09,038 14 9 To which has to be added— Premium on 25,521 new shares taken up. part of 27,500 issued under authority of the half-yearly meeting of the proprietors, held on 20th October, 1878 150,613 15 0 Balance from half-year ended 31st March, IST9 0,753 11 8 Making a total available for division of £269,406 1 5 Which it is now recommended be appropruted as follows: To payment of dividend at the ra'e of 10 per cent, per annum .. £40,010 10 0 To bonus of 6s per share, equal to 5 per cent per annum .. .. .. 24,505 5 0 To proposed addition to reserve fund .. .. 180,000 0 0 To balance carried to profit and loss new account 6,890 65 - 259,406 1 5 The dividend and bonus will be payable at head ofiic a , Auckland, on Friday, the 24th October, and at brandies on receipt of advice. For the board of directors. „ ... J. Logan Camfbell, President. Aggregate Balance-sheet of the Bank of Kew Zealand, at 30fch September, 1879, including London Office at 31ft July, 1879

Audited. Bes-j. Tonus. Joseph: L. Wi lsok. The Chairman, in moving the adoption of the report and balance-sheet, said Gentlemen, —In rising to move the adoption of the report and balance sheet which have just been read, the usual pleasant duty is assigned to me of congratulating shareholders on the success with which the bank’s business has been conducted during the last half year, and the balance-sheet affords the best evidence of the maintenance of the bank’s position. When I last had the pleasure of addressing you from this chair I took occasion to recount certain adverse influences which then existed, and which for the time being had unfavorably affected colonial interests. But we had not then fully realised the effect of the disasters of the previous period, nor did we then anticipate such an unfortunate result in the agricultural operations of this colony, nor such a long continuance of low prices for wool and cereals which has since prevailed. The diminished spending power of the people, the contraction of Government works expenditure, the necessity to provide large remittances to England for public and private liabilities of the colony, have all had a tendency to increase the pressure on our monetary institutions. But the absence of any heavy failures sufficiently proves the readiness with which these institutions responded to the demands made upon them, and is the best proof of the general soundness of the commerce of the country. As a consequence of the lavish orders which a previous season of unexampled prosperity had induced importers to send to England, and the diminished consumption from the causes to which X have alluded, stocks have in many cases accumulated to an inconvenient extent ; but the corrective measures which have now long been in operation are already producing an appreciable effect, and we may confidently look at an early date to have this temporary difficulty fully remedied. The past season has been one of unusual severity to agriculturists, who, in many cases, were overburdened by speculative purchases of land, and this, in conjunction with the bad harvest and low prices, has caused not a few failures among this class of the community. But though numerous, they have not involved any serious amount, and with the improved prospects for this season- in the exceptionally promising condition of the growing crops, and the enhanced price of wheat —it may he reasonably expected that much of last season’s loss to our farming population will this year be recouped. As affecting this institution, although we have, as usual, been exposed to exaggerated reports of heavy losses, I am happy in being able to assure you that these have not exceeded the average, and ample provision has been made for them. The untoward state of the colony during the past six mouths, and the fact that during that portion of the year business is always less active than during the wool and grain season, will sufficiently account for the diminution which appears in some of the items in the balance-sheet. There has been a reduction in the note issue of about £60,000, a>d of over £BOO,OOO in bills payable in circulation, which, although resulting in lessened profit, may be accepted as the best evidence of the measures adopted by importers to reduce their too heavy stocks. There has been a reduction in current accounts of a little over a million, which is largely due to fluctuations in Government balances, the remainder being the natural outcome’ of the general depression caused by bad harvests, low prices, and reclamations on consignments of wool and grain. The condition of the Home market having been favorable for the realisation of securities, advantage was taken of the opportunity to realise the bulk of the Government bonds held by us at last balancing period, and the proceeds have been temporarily utilised in strengthening our coin and cash balances at bankers’, pending a favorable opportunity for re-investment. Our coin in the colony at date of balance amounted to about £900,000, and at the Bank of England £1,100,000 Shareholders will have reason to be gratified at the large addition proposed to he made to onr reserve fund, which will now stand at £555,000, and to which it will be the policy of the Board to continue to make such additions from time to time as our profits may warrant. Every addition to this fund not only increases the intrinsic value of your shares, but increases the dividend-earning power of the hank. . . , . . It remains for me now only to close these remarks, and I may be permitted, in retiring in ordinary rotation as one of your directors,. and consequently vacating the president’s chair, to embrace the present opportunity to express the conviction I entertain, that the severe check which the

colony has sustained during the past year will be attended with the most beneficial results to the community generally, as tending to lessen the over-speculative spirit which previously existed, and to lead all engaged in business to continue their operations within more legitimate limits. We have in the colony of New Zealand every element which leads to. and secures prosperity. Climate alone would secure its future greatness, for we know by statistical proof that no country in the world has greater agricultural and pastoral capabilities. And it is the colony upon which both the capitalist and the laborer in the mother country now look with longing eyes as the refuge where to find a new field of enterprise, and create a new home. With the progress of the colony, which nothing I feel assured can retard, will also progress this intitution, and should you at a future time again do me the honor of electing me to a scat, at your Board, I have no misgivings but I shall then find this bank still maintaining, under my successor, the position of precedence which, I am proud to say, held when it devolved upon me to occupy this chair, and which it it still holds on my retiring from it. I now beg to move the adoption of the report and balancesheet.

U.UWX1TIES, I)r. £ s. a. Capital £1,000.000: less £10,/00— par value of 1979 now Shares of £10 each, held in reserve . * 930,210 0 0 Reserve fund 315,000 0 0 Xotes in circulation 405,165 0 0 Bills payable in circulation .. 1,456,557 0 5 Deposits and other liabilities 6,055.287 13 S Balance of profit and loss .. 259,400 1 5 £10,221,025 15 6

Cr. £ s. d. Coin and cash balance? at Bankers’ 2,054.048 19 4 Bullion on hand and ia transit 214.076 10 6 Government securities 200,000 0 0 Bill? receivable, and sccuriti.s in London SS4.720 G 11 Bills discounted, and others debts due to the bank Landed property, bank premises .. lS-3,547 3 3 £10,224,025 15 c J-noriT AND LOS? AC <- OL* ST. Br. £ s. d. To dividend on 05.021 Shares, of £ l 0 each, at the rate of 10 per cent. 10,010 10 0 To bonus at rate of 5s. per share. equal to 5 per cent, per annum 24,505 5 0 To proposed increase to reserve fund 150,000 0 0 To balance carried to protit and loss. “ new account" 5.S90 6 5 £259,400 1 5 Cr. £ s. d. By balance from half-year ended 31st March, 1870 9.753 11 S B}' premium on 25,521 New Shares taken up, part of 27,500 issued under authority of the halfyearly General Meeting of the Proprietors, held on the 20th October, 1S79 180,613 15 0 By net profit for half-year ended 30th September, 1879 C9.03S 14 9 £259,400 1 5 RESERVE KUKD, Dr. £ s 1. To balance 555,000 0 0 Cr. £ s d. By balance from half-year ended 31st March, 1879 375,000 0 0 By proposed increase .. 380,000 0 0 £555,000 0 0